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Myrna Trauntvein After listening to the public at the public hearing concerning a property tax increase, commissioners decided to adopt the resolution which will allow the increase in property tax revenue. Marvin Kenison, Juab County Commission Chairman, read the proposed resolution stating that: “Juab County will receive an additional $325,000 in property tax revenue per year, an increase of approximately 7.43 percent above the previous year’s budgeted revenue (excluding new growth).” The tax on a residence with an average value of $447,000 would increase from approximately $479.65 to $515.30 per year, a difference of $35.65 annually. The tax on a business with an average value of $447,000 would increase from approximately $872.10 to $936.92 per year, a difference of $64.82 annually. “Concerned citizens were invited to attend a public hearing to provide comments and hear the reasons for the proposed tax increase,” said Clinton Painter, commissioner. “Those in attendance were overwhelmingly in favor of the tax increase.” He said that 17 signed up to speak at the public hearing held last week. “Of the 17, all spoke in favor except for two, one of those was iffy, so only one was in total opposition,” said Painter. Painter made the motion to adopt the resolution and approve a tax increase of 7.43 percent for the 2025-2026 budget starting in December. “We are trying to maintain the amount we collect,’ said Marty Palmer, commissioner. “We would lose revenue if we didn’t do this.” Palmer then made the second and Kenison called for a roll call vote. All voted in favor. Since commissioners passed the resolution, Juab County will increase its property tax revenue by 7.43 above last year’s property tax budgeted revenue excluding eligible new growth. In Utah, property tax rates generally decrease automatically when the total market value of all existing properties within a local taxing entity’s jurisdiction increases significantly. This is due to the state’s Truth in Taxation law. “The core principle of this law is revenue neutrality,” said Painter. Local taxing entities (cities, school districts, counties, etc.) are generally limited to receiving the same amount of property tax revenue from existing properties as they did the prior year, plus revenue from any new construction or development. To achieve this, the county auditor calculates a certified
tax rate each year that adjusts downward in proportion to the overall increase in property values. If a taxing entity needs more revenue than the certified rate provides, it must hold a “Truth in Taxation” public hearing and vote to explicitly raise the tax rate, a process that requires public transparency and accountability. Therefore, a broad increase in property values (often driven by a booming real estate market or inflation) leads to an automatic decrease in the overall tax rate to prevent local governments from experiencing a “windfall” of unapproved revenue. However, the actual tax bill for an individual property owner might still increase if: Their property’s value increased at a rate higher than the average for the entire taxing area, causing a tax shift; A local taxing entity successfully went through the Truth in Taxation process to increase its budget and raise the overall rate; A specific, statewide tax rate (like the one for the State School Fund which was frozen for a few years) causes an increase. “Local taxing entities receive the same amount of property tax revenue that they received in the prior year on previously assessed property,” said Palmer. A common misconception about property taxes in Utah is that taxes increase when property values increase. “Property tax rates decrease when the property values increase so rates must be adjusted upward to remain constant with prior years,” said Kenison. “Without increasing tax rates, local taxing entities can only get additional tax revenue from newly developed and assessed property,” said John Crippen, county administrator. “When new retail properties, buildings, or homes are built on formerly vacant land, additional property taxes result in the first year they are newly assessed.” If a local taxing entity needs additional revenue beyond the previously assessed amount, they must go through Truth-in-Taxation to raise the base tax rate and increase their base revenue. “Some counties raise their property tax a little each year to keep up,” said Painter. “Amid inflation, counties and school districts will likely have to increase property taxes to keep up.”
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